WeWork cleared to exit bankruptcy and slash $4 billion in debt, court says (updated)

Wework

30/05/2024 15:44

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    By Dietrich Knauth
       NEW YORK, May 30 (Reuters) - A U.S. bankruptcy judge on
Thursday approved WeWork's Chapter 11 bankruptcy plan, allowing
the shared office space provider to eliminate $4 billion in debt
and hand the company's equity over to a group of lenders and
real estate technology company Yardi Systems. 
        WeWork used its bankruptcy to negotiate a significant
reduction in future rent costs from its landlords, ultimately
reaching deals to save $8 billion in future rent costs. WeWork
canceled leases at about 160 of its 450 locations during
bankruptcy.
  
       WeWork rejected an alternate buyout proposal offered by
its co-founder and ex-CEO Adam Neumann. The company said Neumann
didn't offer a high enough price to win over WeWork's lenders,
who preferred to take an equity stake as part of the bankruptcy
deal. 
  

 (Reporting by Dietrich Knauth)
 ((Dietrich.Knauth@thomsonreuters.com;))